Indian Overseas Bank Receives Penalty Order Under CGST Act
Indian Overseas Bank announced on March 30, 2026, that it received an order from the office of the Commissioner, Central Tax (Delhi West), Central Goods and Services Tax, Delhi West Commissionerate. The order, issued under Section 74(9) of the CGST Act, 2017, levies a penalty of Rs. 8,23,79,584/- on the bank.The penalty relates to actions taken by the bank in exercise of its statutory powers under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), specifically concerning the possession and transfer of a secured asset through e-auction during fiscal year 2020-21.
Indian Overseas Bank intends to challenge the order in the appropriate forum and expects the entire penalty will subside. The bank states that the actions were involuntary and statutory in nature and that it is merely enforcing its security interest under the SARFAESI Act. The bank does not anticipate any financial or operational impact as a result of the penalty.
Source:
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.